IPL will do billion-dollar business this year: Modi

In terms of brand value or valuation there could be bigger sports club in the West but most of those have negative cash flow, Mr. Modi said

Indian Premier League would generate a revenue of USD one billion this season, thanks to huge fan following across the globe, attracting a large number of advertisers, its Commissioner Lalit Modi said on Wednesday.

“The tournament is still on and we have not reached the final number… Yes, it will be more than a billion dollar (about Rs. 4,700 crore) this season … last season we did USD 450 dollar.

“Thereafter, we would double every year,” Mr. Modi said and asserted that as long as the fans keep coming to IPL, the league’s brand value would increase and hence the revenue.

Revenue for Sony, the official broadcaster, alone would be about Rs. 700 crore to Rs. 800 crore, he said brushing aside the criticism that the advertising rates for the IPL’s third season were very high.

“There may be some advertisers who feel that way but there are lot many others who are willing to join us,” he said pointing out that the huge success of the tournament in terms of TV viewership would certainly entice the advertisers.

“There is no other sporting event across the world generating more eyeballs than the IPL,” he said, adding that the league was virtually in every part of the world through either broadcasters of through the Internet — via YouTube.

Asked about an independent brand consultancy valuing Brand IPL at USD 4.13 billion, more than double from last year, Mr. Modi said that it was not done by the organisation and .

“It is indeed valuation given to us by outsiders.”

Brand Finance, which came out with IPL brand’s latest valuation, said that the brand alone has risen significantly, providing tremendous economic value to its owner — BCCI.

It said this demonstrates the exponential value of IPL and the Brand potential in a cricket loving country like India and other global cricketing countries. Although the English Premier League is valued much higher at USD 12 billion, the IPL’s valuation has risen above USD four billion in just three years, Brand Finance pointed out.

In terms of brand value or valuation there could be bigger sports club in the West but most of those have negative cash flow, Mr. Modi said and pointed out that the English Premier League, though it commands a very high brand value, was facing a USD 800 million deficit.

“Here, we are talking about cash flow and it is growing to grow in future at IPL,” he said, while detailing the dynamics of financing of IPL franchises.

Mr. Modi said that the IPL teams had no load on them and “we are providing infrastructure and stadium free of cost.”

Asked about predictions that IPL could not sustain, Mr. Modi retorted: “Let them (cynics) say anything. I know the numbers. I know the game. I have delivered. We will continue to deliver.”

The success of IPL hinged on the capacity to draw huge crowds, a fact that need not be proven again and again, he said, adding that other factors included that teams were equally placed in terms of finances and capacity to buy the players.

“The level playing field between the teams would make the event more interesting,” he said and added that another factor for the success was that the revenue would be proportionate to the number of matches that are played.

This season there are 60 matches and the number would go to 90 by next year and, therefore, the revenue would increase on a pro-rata basis, he said

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‘Withdrawals unlikely after IPL’s new security promises’

It warned of mass withdrawals from the Indian Premier League but the Federation of International Cricketers Association now says such a scenario is unlikely to arise as IPL organisers have given fresh commitments on the security of players. After the al-Qaeda threat against the event was deemed “not credible” by various security experts, FICA chief Tim May said IPL’s new promises would “certainly improve confidence in security”.

“This is a significant step forward. The more information you provide the players with, the greater the likelihood that they will attend the event,” May said.

After refusing to deal with players’ bodies all along, IPL commissioner Lalit Modi said he was ecstatic that “everybody is on the same page about the security arrangements”.

“This is very good news for us – I don’t think there will be any withdrawals at all. Already a lot of the players are on planes on their way to India and will arrive in the next few days,” he said.

Modi, who had earlier claimed that heavens won’t fall if foreign players refuse to come for the IPL, said security was paramount.

“Security is very important to us. We have not had to change our plans, I think it is more a case of the players now understanding them. I think they are more comfortable with the plans being implemented,” he said.

Meanwhile, May said after struggling to get information of security plans from the IPL in the past few weeks, some details are finally trickling in. “We have a significant amount of information we did not 0have previously, which will assist players making far more informed decisions about whether to go or not,” he said.

IPL security plans sufficient on papers: Expert

Security expert Reg Dickason’s report on the threat to the IPL says that while the security plans are sufficient on paper, the Indian state governments are yet to commit to providing the required police numbers which is the primary concern for the Australian players participating in the tournament.

A meeting of players, managers and the Australian Cricketers’ Association in Sydney resolved to take their concerns to IPL commissioner Lalit Modi even though Dickason’s independent assessment concluded that safety at the Twenty20 tournament could not be guaranteed.

Nine states — Maharashtra, Orissa, Gujarat, Himachal Pradesh, Tamil Nadu, Karnataka, West Bengal, Punjab and Rajasthan, as well as the national capital region of Delhi, are scheduled to host 60 games in 12 cities over 45 days from March 12, The Sydney Morning Herald reports.

Dickason would not comment on the specifics of his report last night.

“I’ve submitted the report and now it’s up to the players’ associations to decide what they want to do based on the available facts,” Dickason said.

“It’s up to the players to decide whether or not they go. From our end, there’s no agenda, no motives and no self-interest. Our brief was to provide a security assessment based on all the facts at hand,” he said.

ACA chief executive Paul Marsh, who chaired yesterday’s meeting of players and managers, said the worldwide union FICA would approach the IPL about the concerns raised in the Dickason report and await a response.

Modi last night defended the IPL security arrangements. “I spoke to a couple of the [Australian] boys yesterday about it. I think they will all take part. The tournament will go on,” he said.

British football club keen to buy IPL team

A Premier League football club of Britain has shown interest in buying one of the two Indian Premier League (IPL) cricket franchises to be sold at a base price of $225 million, a media report said.

IPL commissioner Lalit Modi said that a Premier League club had expressed an interest in buying one of the two franchises to be sold over the coming weeks.

“There is a very famous football club in the UK very interested in bidding,” The Telegraph quoted Modi as saying.

“(They are) probably one of the most famous football clubs — probably top three. They are interested in taking a stake.”

A spokesman for Manchester United rejected any interest, while Modi denied Chelsea were keen.

The media report said that with Liverpool and Arsenal’s long-term ownership uncertain, Manchester City would be favourites to make a move. Their Gulf-based owners have the financial strength, but a club official Monday night rejected suggestions Modi was referring to them.

The Abu Dhabi Cricket Association had recently signed a partnership deal with the MCC, who have also been approached about fronting a bid for an IPL franchise.

BCCI getting bigger than Manchester United in sponsorship?

BCCI (Board of control for cricket in India) is undoubtedly the richest Cricket Control board in the world. The earnings have multiplied many times, thanks to the money spinning brain child of Mr.Lalit Modi – Indian Premier League (IPL) .

The structure of the IPL was much on the lines of how the football clubs leagues work eg : English Premier League (EPL). The initiative invited lot of doubts initially with people unsure if the Indian Cricket Audience is ready for a state wise loyalty but IPL came through and we all know what a grand success story it is.

BCCI

Cashing on the ever increasing popularity of IPL and its increasing brand value, BCCI has decided to up the stakes for sponsors vying for an opportunity to get associated with Team India.

The fresh bids for jersey sponsorship might see BCCI overtake one of the biggest football clubs in the world-Manchester United.

RedDevils’s current t-shirt sponsorship deal is approximately Rs. 650 crores for 4 years whereas BCCI is expecting around Rs.800 crore in sponsorship money for a 4 year deal. (Source: Espn)

BCCI is asking for a minimum reserve price of Rs 3 crore for each Test, ODI or Twenty20 game. Interesting to note here is that BCCI is asking the same price for Twenty 20 even though this format of the game has the least duration.

But, with the increasing popularity of the version, the sponsors might as well get the best bang out of their buck even if the eyeball attraction time is comparatively smaller.

The current sponsor SAHARA is paying around 2 crore each for an ODI and a Test match and Rs 1.5 crore for a T20 game. With the fresh bids rolling out, SAHARA might have to reconsider their sponsorship or be ready to dole out truck loads of cash.

BCCI has pulled out a rabbit from the hat with IPL as far as the revenues are concerned. Moreover, along with increasing revenues the brand value of Team India (BCCI) has zoomed too.

The stakes have been raised many folds but will the ROI (Return on Interest) also increase correspondingly for the sponsors. The sponsors will be betting on attracting maximum eyeballs wherever Indian team is playing.

But, shouldn’t the team performance act as an influencing factor too. If the team performance does not match the expectations of the audience, will enough people be watching the Sponsor’s logo on the player’s jerseys.

I have my doubts but then given the buzz surrounding the IPL and Indian team’s decent performance, the bidding process might attract enough players trying to outbid each other.

Do you think the BCCI will have enough bidders for the new deal or the asking price is too high this time around?